Walmart demonstrates its concern for the environment by offering compostable cutlery under its Great Value brand.
Ramirez explains that the drivers for this shift are multifaceted and reflect both an “increasingly rigorous regulatory and public reporting environment,” as well as a shift in consumer sentiment. “Younger generations in particular are demanding that retailers take responsibility for the impact of products and issues like biodiversity, climate change, and worker protection and empowerment, among a whole host of other issues where costs have historically been externalized,” he points out.
Andy Harig, VP of tax, sustainability and policy development at Arlington, Va.-based FMI — The Food Industry Association, echoes this sentiment, noting that he’s already seen changes in the way retailers and suppliers are conducting business as a result. Whereas sustainability topics used to be more siloed, they are increasingly making it into everyday business conversations, he says. This is a collaborative process that will require a higher level of partnerships among retailers and their suppliers if the industry is to succeed.
A lot of collaborative work is already taking place. For instance, Solon, Ohio-based Efficient Collaborative Retail Marketing (ECRM) and its subsidiary product discovery tool, San Francisco-based RangeMe, have been working with food retailers since 2021 to conduct virtual “Sustainability Summits,” for which they connect larger retailers with suppliers that are focused on responsible sourcing and other sustainable practices. Participating grocery companies have included Amazon, KeHE, Kroger, Meijer, Sprouts and Wakefern.
Advice From the Pros
Perhaps the gold star holder in responsible sourcing is Austin, Texas-based Whole Foods Market, which has long held this as a key pillar of its sustainability strategy, even rolling out its own Sourced for Good program two years ago.
“At Whole Foods, we want customers to feel good about what they’re putting in their baskets, so we prioritize supply chain transparency and responsible sourcing,” says Karen Christensen, SVP of perishables and quality standards. “That includes supporting the rights, well-being and dignity of workers in our supply chain.”
[Read more: "Whole Foods Market CEO Tackles How to Be Purpose- and People-Driven"]
Through the Sourced for Good program, which supports workers, communities and environmental stewardship where products are sourced, Whole Foods collaborates with farms, suppliers and international third-party certifiers, including Fair Trade USA, Rainforest Alliance, Fairtrade America, Fair Food Program, Equitable Food Initiative and Regenerative Organic Certified. The program has raised millions of dollars annually for hundreds of communities across 12 countries, including the United States.
Looking ahead, Christensen says that she expects more retailers to require traceability to a farm or fishery so that they can provide their customers with better transparency.